11. Blue Line is the only natural gas supplier in a region. The region's demand for natural gas and Blue Line's costs and marginal revenue are shown in the figure below.

A. What is Blue Line's profit-maximizing output? (billion m³)

B. In the scenario above, Blue Line's profit-maximizing price is $_____ per m³.

C. If Blue Line is unregulated, its economic (profit/loss)_______is $______billion

D. If Blue Line produces its profit maximizing level of output and sells it at the profit maximizing price, the deadweight loss is $_____ billion.

E. If the government regulates Blue Line by setting the price of natural gas equal to its average total cost, Blue Line's economic profit will be $_____ billion.

F. If the government regulates Blue Line by setting the price of natural gas equal to its average total cost, the deadweight loss will be $_____ billion.

G. If the government regulates Blue Line by setting the price of natural gas equal to its marginal cost, Blue Line will produce _____ billion m³ of gas.

H. If the government regulates Blue Line by setting the price of natural gas equal to its marginal cost, the deadweight loss will be $_____ billion.

I. If the government regulates Blue Line by setting the price of natural gas equal to its marginal cost, Blue Line's economic (profit/loss)____ will be $______ billion

$ /m3 0.40 0.30 0.23 0.20 ATC 0.10 MC MR D 6 9.5 12 Quantity (billion m3)